Going through a bankruptcy filing is among the most stressful experiences most people will have, and it affects your credit in intimidating ways. But although coming back from a bankruptcy filing may seem impossible, it doesn’t have to be. Being limited in your credit options is not a permanent situation, and the good news is that you can begin rebuilding your credit immediately after the bankruptcy.
Obtaining a Credit Card After a Bankruptcy Filing
Because your credit score could be in the 400s after your bankruptcy, you will need to start the rebuilding process right away. But because of the bankruptcy, and the hit to your credit, your options will be limited at first. Perhaps the easiest initial option is to find a financial institution that offers a secured credit card. To obtain a secured credit card, you must provide the institution with an initial deposit, which they will then offer back to you in the form of a credit limit equal to that amount.
Once you’ve gotten a secured credit card, be sure to use it sparingly to avoid accumulating debt, but use it enough that you’ll have to make monthly payments. Making those payments in full each month will improve your credit score more quickly than carrying debt over from one month to the next.
It’s also possible that you may receive offers for unsecured credit cards, which don’t require an initial deposit. Look for cards with higher credit limits, but be sure to keep your balances low and pay them off every month. In the case of both secured and unsecured cards, avoid cards with initial fees.
You also want to check with the lender to see if they report to all three major credit bureaus, which will help you avoid inconsistencies in your credit reports. Finally, you are entitled to a free credit report from each bureau once a year. Request them one at time several months apart and contact them with concerns about inconsistencies.
Always remember that there is hope after a bankruptcy, and that you have options. Schedule a free consultation D. Max Gardner, an experienced Bakersfield bankruptcy attorney today 661-888-4335
